Post on 03-Jan-2016
transcript
Channel Decisions
Chapter 13
Global Marketing
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Distribution
• Distribution is the physical flow of goods through channels
• Channels are made up of a coordinated group of individuals or firms that perform functions that add utility to a product or service
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Channels Create Utility
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Distribution Terminology
• Distributor – wholesale intermediary that typically carries product lines or brands on a selective basis
• Agent – an intermediary who negotiates transactions between two or more parties but does not take title to the goods being purchased or sold
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Marketing Channel Alternatives: Consumer Products
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Marketing Channel Alternatives: Industrial Products
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Guidelines for Dealing with Channel Intermediaries
• Select distributors – don’t let them select you
• Look for distributors capable of developing markets, rather than those with a few good customer contacts
• Treat local distributors as long-term partners, not temporary market-entry vehicles
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Guidelines (cont.)
• Support market entry by committing money, managers, and proven marketing ideas
• From the start, maintain control over marketing strategy
• Make sure distributors provide you with detailed market and financial performance data
• Build links among national distributors at the earliest opportunity
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Global Retailing
• Department stores• Specialty retailers• Supermarkets• Convenience stores• Discount stores and
warehouse clubs
• Hypermarkets• Supercenters• Category killers• Outlet stores
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Global Retailing Categories
Fewer Categories
Many Categories
Own-labelfocus
Manufacturer brands focus
ABenetton, Ikea,
Gap, C&A
BMarks & Spencer
Migros
CToys R Us, Virgin,
Douglas, Spar
DCarrefour, IGA,
Promodes
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Global Retailing Market Entry Strategy Framework
Difficult to Enter
EasytoEnter
Culturally Close
Culturally Distant
DOrganic
AChain
Acquisition
CFranchise
BJoint Venture
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Transportation Considerations
• Rail
• Truck
• Air
• Water– Inland water transportation– Ocean transportation
• Pipeline